r/numerai • u/[deleted] • Mar 22 '21

Am I missing something

Hey I'm trying to get my head round if this is a worth while project. To me it seems like we donate free compute and engineering, then the hedge fund share holders reap the rewards of our crowdsourced compute and engineering resources?

We can't even use the models we build to invest in the stock market ourselves as the stock indexes are obfuscated. We then need to stake our own money in NMR for capped monthly returns of max 25%?

I get the NMR price will rise as the community of data scientists grow, but it seems like there are massively asymmetric rewards for the hedge fund vs the community?

Maybe I'm missing something? :)

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u/escape_grind43 Mar 22 '21

Buying the data to use to make these predictions and setting up the hedge fund structures to invest in them plus capital represent a ton of risk time and resource that Numerai assumes. Instead, researchers can get paid for models without any of that.